HBOS, Britain’s biggest mortgage lender, warned homeowners to expect two years of falling house prices as it unveiled a £4bn rights issue to strengthen its capital position in the 'deteriorating credit environment'. Daily Telegraph
In a downbeat trading statement, described by some analysts as a 'profits warning', chief executive Andy Hornby said: 'It is inevitable we will have a couple of years of modest [house price] declines.' Halifax-owner HBOS expects a fall this year of about 5% – or 'mid single digits'.